The failure of Vietnam’s Saigon Commercial Bank is exposing broader issues in the country’s banking industry, according to analysts.
SCB was embroiled in the case of billionaire real estate developer Truong My Lan, who has been found guilty of $12bn of fraud. Lan arranged for the merger of three smaller banks into SCB, and owned 91.5 per cent of shares. This is despite Vietnamese law limiting share ownership in banks by individuals to 5 per cent, and Lan not having an official role at the bank.
